The UAE Ministry of Finance (MoF), in collaboration with the Central Bank of the UAE, has announced the successful completion of the October 2025 auction of UAE dirham-denominated Islamic Treasury Sukuk (T-Sukuk). The auction attracted strong investor interest, with total bids reaching AED 4.57 billion (USD 1.24 billion) — more than four times the allocated issuance of AED 1.1 billion. This impressive oversubscription of 4.2 times highlights growing demand for Sharia-compliant investment instruments and reflects investors’ confidence in the UAE’s economic outlook and credit strength.
The auction included a new two-year tranche maturing in October 2027 and another tranche maturing in May 2030. The yields to maturity (YTM) were set at 3.49 percent for the two-year Sukuk and 3.65 percent for the five-year Sukuk, representing a tight spread of up to seven basis points above comparable U.S. Treasuries. These competitive rates demonstrate strong investor appetite and market-driven pricing, reinforcing the UAE’s position as a leading regional hub for Islamic finance.
All issued Sukuk have been listed under the UAE Treasury Islamic Sukuk Program on Nasdaq Dubai, which enhances transparency and facilitates easier access for investors in the secondary market. The listing also supports the continued development of a dirham-denominated yield curve, providing secure, Sharia-compliant investment options for a diverse range of investors.
The Islamic T-Sukuk program plays a key role in deepening the UAE’s local debt capital market and broadening the investment landscape. It contributes to the country’s long-term economic sustainability and growth objectives by strengthening financial market infrastructure and promoting diversified funding sources.
This successful issuance follows a similarly strong auction in September 2025, which also raised AED 1.1 billion and was oversubscribed 4.6 times. That auction saw yields of 3.64 percent for the tranche maturing in August 2028 and 3.72 percent for the tranche maturing in May 2030, with spreads of up to five basis points above comparable U.S. Treasuries. The back-to-back success of these auctions highlights sustained investor confidence in the UAE’s fiscal framework and the continued appeal of Islamic Treasury Sukuk as a safe and attractive investment vehicle.